What is staking with stBTC?

Staking with Acre is a process that creates a new version of a token (stBTC), which represents the underlying staked token. Unlike traditional staking, where users assets are locked and illiquid until they are unstaked, stBTC is transferable while accumulating the underlying rewards.

What is stBTC?

stBTC is a yield bearing liquid staking token that can be redeemed for BTC from the stBTC ERC-4626 vault. BTC deposited to Acre is used to stake and validate various Bitcoin Layer 2 protocols that use BTC as their security asset. In exchange, a reward is earned in the L2 native reward tokens and/or BTC, and that accumulates to the stBTC vault and can be redeemed by stBTC holders.

What happens to my Bitcoin when I stake?

BTC deposited in Acre is used to mint tBTC via Threshold Network. The tBTC is then allocated to select validators of Bitcoin protocols and pools to secure the network and provide liquidity. All BTC movements with Acre can be tracked in the smart contracts on the Ethereum network.

How are my assets secured?

tBTC is secured through the Threshold Network, which uses a decentralized network of nodes and probabilistic guarantees to securely mint tBTC. Threshold Network nodes reach a consensus before executing any kind of mint or redemption, which makes tBTC highly secure and decentralized.

Does Acre take custody of my assets?

No. When user funds are deposited into Acre, the underlying BTC is held in a 51-of-100 multisig operated by decentralized tBTC nodes. Only stBTC holders can retrieve the underlying BTC staked in Acre. Please check out Threshold Network documentation for more detail.

What does the ACRE token do?

ACRE is the governance token of the Acre Protocol. ACRE can be locked for veACRE, which gives holders the right to participate in protocol governance.

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